10 Best Magic Formula Stocks For The Rest Of 2024

7. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Investors In Q2 2024: 219

Gotham Asset Management’s Q2 2024 Stake: $49.2 million

Meta Platforms, Inc. (NASDAQ:META) is the parent company of Facebook, WhatsApp, and Instagram. With roughly 3.2 billion people using its applications as of March 2024, it is one of the biggest social media and connectivity firms in the world. This provides Meta Platforms, Inc. (NASDAQ:META) with a sizeable moat that reduces the pressure for growth on management. As a result, the key drivers of the firm’s hypothesis include its ability to maintain the user base, increase average revenue per user, and introduce new products and services to monetize the user base. On these fronts, Meta Platforms, Inc. (NASDAQ:META) has lately been implementing artificial intelligence into its products. The firm plans to use AI to enable advertisers to autonomously create their campaigns, and Meta Platforms, Inc. (NASDAQ:META) is also setting itself up for AI monetization through its AI Studio which enables users on its platform to create their own AI. Meta Platforms, Inc. (NASDAQ:META)’s technology focused management and business has also allowed it to create its own AI model called Llama. This means that the firm does not have to license AI from others, such as OpenAI.

Evercore analyst Mark Mahaney shared how Meta Platforms, Inc. (NASDAQ:META) is monetizing AI during a recent talk with CNBC:

“If you look at what happened with Meta Platforms Inc (NASDAQ:META). they went to almost 30% revenue growth, they are growing dollar-wise faster than anybody else that’s because they used AI to rebuild their ad-tech stack because they used AI to rebuild their user interface and get us more engaged, so it actually worked for them.”